1. 1 Controversial Issues  Data mining (or simple analysis) on people may come with a profile that would raise controversial issues of  Discrimination  Privacy  Security  Examples:  Should males between 18 and 35 from countries that produced terrorists be singled out for search before flight?  Can people be denied mortgage based on age, sex, race?  Women live longer. Should they pay less for life insurance?

2. 2 Data Mining and Discrimination  Can discrimination be based on features like sex, age, national origin?  In some areas (e.g. mortgages, employment), some features cannot be used for decision making  In other areas, these features are needed to assess the risk factors  E.g. people of African descent are more susceptible to sickle cell anemia

3. 3 Data Mining and Privacy  Can information collected for one purpose be used for mining data for another purpose  In Europe, generally no, without explicit consent  In US, generally yes  Companies routinely collect information about customers and use it for marketing, etc.  People may be willing to give up some of their privacy in exchange for some benefits

4. 4 Data Mining with Privacy  Data Mining looks for patterns, not people!  Technical solutions can limit privacy invasion  Replacing sensitive personal data with anon. ID  Give randomized outputs  return salary + random()  …

5. 5 Data Mining and Security Controversy in the News  TIA: Terrorism (formerly Total) Information Awareness Program –  DARPA program closed by Congress, Sep 2003  some functions transferred to intelligence agencies  CAPPS II – screen all airline passengers  controversial  …  Invasion of Privacy or Defensive Shield?

6. 6 Criticism of analytic approach to Threat Detection: Data Mining will  invade privacy  generate millions of false positives But can it be effective?

7. 7 Is criticism sound ?  Criticism: Databases have 5% errors, so analyzing 100 million suspects will generate 5 million false positives  Reality: Analytical models correlate many items of information to reduce false positives.  Example: Identify one biased coin from 1,000.  After one throw of each coin, we cannot  After 30 throws, one biased coin will stand out with high probability.  Can identify 19 biased coins out of 100 million with sufficient number of throws

8. 8 Another Approach: Link Analysis Can Find Unusual Patterns in the Network Structure

9. 9 Analytic technology can be effective  Combining multiple models and link analysis can reduce false positives  Today there are millions of false positives with manual analysis  Data mining is just one additional tool to help analysts  Analytic technology has the potential to reduce the current high rate of false positives

10. 10 Data Mining and Society  No easy answers to controversial questions  Society and policy-makers need to make an educated choice  Benefits and efficiency of data mining programs vs. cost and erosion of privacy

11. 11 Data Mining Future Directions  Currently, most data mining is on flat tables  Richer data sources  text, links, web, images, multimedia, knowledge bases  Advanced methods  Link mining, Stream mining, …  Applications  Web, Bioinformatics, Customer modeling, …

12. 12 Challenges for Data Mining  Technical  tera-bytes and peta-bytes  complex, multi-media, structured data  integration with domain knowledge  Business  finding good application areas  Societal  Privacy issues

13. 13 Data Mining Central Quest Find true patterns and avoid overfitting (false patterns due to randomness)

14. 14 Knowledge Discovery Process Monitoring Start with Business (Problem) Understanding Data Preparation usually takes the most effort Knowledge Discovery is an Iterative Process Data Preparation

15. 15 Key Ideas  Avoid Overfitting!  Data Preparation  catch false predictors  evaluation: train, validate, test subset  Classification: C4.5, Bayes, …  Evaluation: Lift, ROC, …  Clustering, Association, Other tasks  Knowledge Discovery is a Process